Introduction to Business Project

In the contemporary scenario, all the organizations have been emphasizing on different marketing strategies so that it can survive in competitive market place for longer period. At the same time, the present study has been stating deep insights about two different multinational oil companies along with their external and competitive analysis. The research is emphasizing on Total SA which is one of the largest multinational integrated oil and gas industry in European market. The company is also considered as super major oil companies in the world and it has its business operations in many countries.

The company is the French multinational company and was founded in the 1924 by the Ernest Mercier after rejecting the partnership with the Royal Dutch Shell Company. In the year 2013, the company generated the revenue around the 171.65 billion Euros while, the Total oil company total profit was 17.81 billion Euros. The company's headquarter is being situated in the France (De Oliveira, 2007). The company deals in providing the wide range of products and services that mainly include exploration of oil and gas, refining oil and various petrochemicals, transporting and trading the various gas like LPG and the natural gases to various other organizations located in the different countries. Company also declared the lower fuel emission as well as the cost efficient crude oil or the petroleum products. While, the Total oil company also manufactures the large-scale chemicals for the other companies. The company is also being viewed as the super-major oil company in the world that serve their large customers and the organization in the international market.

As compared to different competitors, market share of the company is increasing due to business expansion aspects in many countries. The rivalries of Total SA mainly emphasizes on refining, mining and exploring processes which also assists them to manage all the business prospects in effectual manner.

Ranges of entities have added in the same sector for the perspective of enhancing business reach worldwide. Changes have been arising in competitive market place so that businesses can manage technological aspects and at the same time, researcher is also emphasizing on major factors that impacts external business environment (Dunning, 2012). Certain theories and facts are presented in the present study about the subject matter to support the defined topics mentioned here. Furthermore, the research report has also discussed PESTLE and PORTER'S analysis for two different market places. This is being stated for the purpose of suggesting the suitable opportunity for the business. In this context, the research has also discussed the factors which the cited companies should take into account while trading across the borders.

Other company that is being selected in the present case is British Petroleum which is yet another largest oil and gas companies in UK. The following company is being selected for the purpose of facilitating comparative analysis between largest oil companies of Europe. The performance of the company has been increasing effectively as it is a vertically integrated company operating in all areas of the oil and gas industry. Further, the largest division of the company is based in America which has a market share of around 19.75% (Biswas and et. al. 2012). Thus, the present study has been stating insights about competitive environment of these companies.

Companies along with competitive positioning in its various market places

Competitive strategy of Total SA

The major competitors of Total SA are Royal Dutch Shell, British Petroleum and Exxon Mobil Corporation as these companies mainly exist in UK market place. In order to create competitive edge over rivalries, it is crucial for Total SA to emphasize its on capabilities and core competencies so that threats can be managed accordingly (Stevens, 2008). Thus the company has been producing base chemicals and specialty chemicals for the industrial and consumer markets. The company has huge interest in power generation as well which further also assists in managing mining processes. Hence with the help of Porter's generic strategy, Total SA can pursue competitive advantage across the chosen market and also beyond the market place. Subsequently the business can adopt lower cost strategy, differentiated strategy and focus strategy among which differentiated technique can be selected for making the identity different with that to the competitors. If the business conducts the market in the same area (in UK), then it has to emphasize on differentiation strategy so that competitive edge can be created in the same market place (Crucini, Kose and Otrok, 2011).

However on the other hand, the market place of India is also embodied with certain oil companies such as Indian Oil, Hindustan Oil Exploration Company Ltd and Petronet LNG Limited. Apart from these companies, there are a few companies also that posses threat to Total SA in different ways; so this could create the market place more competitive (Penrose, 2013). Hence in such type of market place, it is crucial for Total SA to adopt Cost Leadership Strategy which involves the firm to win market share by appealing to price sensitive customers. In order to work as per the strategy, it is imperative for Total SA to change the facets of business. This can be achieved by having lowest prices in the target market segments or least the lowest price to value ratio. Here the foremost consideration should be paid on achieving high asset utilization (Vivoda, 2009).

Marketing strategies and distribution channels of Total SA

The marketing strategy of Total SA should be changed as per the current market condition and as the business is operating in UK market place; therefore marketing concepts should be changed as per the country. Here in the present case, Ansoff matrix can be taken into account which is a competent marketing strategy and which also develops more opportunities of growth and success (Wellink, 2014). The strategies are categories on four basics such as Market development, Product Development, Market Penetration and Diversification. For the present case, Product Development Strategy can be executed in which Total SA should emphasize on developing new products and services in same market segment for existing customers. This can also assist the business to grab attention of new and potential customers (Akrivopoulou and Christina, 2012).

However on the other hand, to operate the business successfully in Indian market place, it is essential for Total SA to implement diversification strategy where in new products should be developed at new market place for managing sustainability aspects (Nandi, 2010). The strategy is also useful in terms of acquiring attention of customers on higher extent and at the same time, competitive positioning can also be facilitated for the same.

Core competencies and capabilities of Total SA

Here in the present case, A core competency model of C. K. Prahalad and Gary Hamel can be applied which is a harmonized combination of multiple resources and skills that distinguish a firm in the market place (Allen, 2005). The model is based on four major competencies which are being mentioned here:

Resources: These are the resources for the development and acquisition of skills and technologies (tuominen and et. al., 2008).

Capabilities: This provides the various possibilities to build the level of core competencies. This is also crucial in terms of enhancing the value of business in regional and global market place.

Competitive advantage: This provides challenge to acquire and develop the largest possible market share of core products (Sohal and Perry, 2006). Hence through the major product, Total SA can enhance its competency factor.

Strategy: The strategy to develop the largest possible market share of finished products. Thus as per the competency model, Total SA can get the opportunities of growth and success in the same market place.

As per the viewpoints of George Stalk, Total SA can manage its core competencies on the basis of managing product quality and acuity so that evolving customer needs can be met. At the same time, it could also assist Total SA to manage business practices effectively in Indian market place. The main emphasis here is being given on meeting the needs of customers. It is thus also essential for Total SA to undertake strategic decisions so that competitive edge can be created amid the existing business rivalries (Rendtorff, 2011). However the capability of Total SA can also be encouraged with the help of Charles Baden Fuller innovation model which provides a basis to manage business condition in effective manner.

Porter's of Total SA:

Threats of new entrants: New entrants can also face low level of threats due to high capital requirements to set up the operations. It would be difficult for the companies to develop the brand image in effective manner in new market place.

Threat of substitutes: Threats of substitutes are high for the company because oil related products, chemicals and natural gas produced by different companies are highly substitutable. The products and services of the competitors can be used as major industry rivalries since they are producing same sort of services (Risk factors, 2015).

Bargaining power of buyers: Consequently bargaining power of buyers is medium because most of the buyers of oil products buy in bulk and therefore loss of one buyer would significantly affect the company's revenue. Oil and gas both are major products for the economy and this also explains the reasons for which some developing countries supply oil in state agencies.

Bargaining power of suppliers: The bargaining power of suppliers is low because Total SA has embraced a vertical integration growth strategy which involves mergers and acquisitions with companies working at different level of operation; hence thereafter this influences the supply chain management of the company (Rendtorff, 2011).

Competitive rivalry: The major competitors of the Total SA are Exxon Mobil Corporation, Royal Dutch Shell and BP Plc which have also established their global presence in the oil and gas industry of UK. These companies can impact the business positions due to strong level of branding and differentiating strategies.

Porter's five force model of British Petroleum

Porter's five force model is the important tool for industry analysis that facilitates management of British petroleum to expand the business sin an effectual manner. It proves to be effective to adopt appropriate marketing strategies in the marketplace.

  • The analysis of British Petroleum can be understood in term of bargaining power of buyers. Suppliers and new entrants ass well as other existing burs (Jenkins, 2013).
  • The threat of substitute product for British Petroleum is low because of high cost of production. Similarly, the threat of new entrants is also low because of huge capital requirement at the initial stage.
  • Furthermore, the existing players in the oil and gas industry are very high because of high exit barrier.
  • The competitors of British Petroleum consists of Shell, Exxon and Total as well as Mobil. Further, bargaining power of supplier is high because of availability of few substitutes (Wetherly and Otter, 2014).
  • In addition to this switching cost of suppliers is also high owing to this, management of British Petroleum need to consider the issues of suppliers in an effectual manner. The bargaining power of buyers is medium that because they are price sensitive.

What does the company need to consider when trading across borders

Total SA

It is one of the world largest oil organization company in French market place. The business entity is managing various business operation in different overseas market. Currently, Total SA is mainly dealing in US and European. But, business entity wants to expand business in new emerging market of the world that is India. The main reason behind selection of this new decision is that Total SA has recorded a huge loss of money from several dimensions. As a result, Total SA. has to reduce or cut the spending of organization by 20% to lower its North American shale exposure (Research and Markets: Analysis of Total SA. 2012). This approach assists Total SA. in order to keep losses at a minimum. In addition to that drop in oil prices also influences organization in order to expand business in new market. This is because reduction in oil price affects profitability of company.

PEST analysis of Total oil.

Political factors: While examining the political factors of Total oil., global factors can be taken into account since those impacts the scenario of business. Operating the business in European market leads Total oil to emphasize on many aspects such as data protection, health & safety and environment protection. Thus in the same scenario, the company might be facing threats from Indian oil and gas industry since all are emphasized towards numerous norms. Hence due to changes in political scenario, Total oil. might be experiencing sustainability challenges (PEST Analysis: What is PESTLE Analysis, 2014).

In different part of world, number of countries controls the access to their oil and gas resources. In addition to that restrictions on foreign investment in the particular oil and gas sector for national interest. Many countries also control the import or export of certain oil based products as per the economic condition (Risk factors, 2015). In order to manage cross border business in India, Total oil can expand business by developing partnership with domestic Indian firms that will reduce risk of investment for organization.

Economical factors: The ratio of economic growth in Europe has been changing frequently due to consistent flow of information from the government and other sources. However on the other hand, oil and gas industry is facing some constraints due to improper flow of resources. Other economic factor which includes exchange rates, inflation levels, income growth, debt & saving levels also affects the business and consumer. The current state of world stock markets is a typical example of the volatility of economic factors. Hence from the discussion, it is clear that Total oil. can also face threats in Indian market place (Jefferson and Bowling, 2011).

Technological factors: Total oil. is also representing great concern towards technological aspects and for that purpose, the subsequent company is allocating more resources for augmenting the ratio of creativity and innovation. Innovation needs to take place in the business so that competitive edge can be created in the same market. However apart from that, while entering into Indian market, Total oil. is required to give more concern towards technological facets for sustaining its position at market place (Total oil Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis, 2015).

Social factors: The Company seems to have great concern towards social forces so that the source of revenue can be retained for longer period and this is being conducted in UK market place. However on the other hand, Total oil. is also required to give more concern towards social aspects for reducing the level of pollution at market place (Heflin and wallace, D., 2012).

Environment factors: Total oil. has been getting huge collaboration from the society as the company pays more attention towards environment protection. At the same time, while operating business in Indian market, Total oil. is required to pay more emphasis towards environment aspects since through that, economic growth can also be facilitated. It is one of the most important factors that could create huge impact on cross broader operations. In order to risk of climate change, the public authority of India has developed strict regulatory frameworks to reduce greenhouse gas emissions through various tools such as carbon taxes, restrictive permitting, increased efficiency standards with the help of latest technologies and promotion for renewable energy (Risk factors, 2015). All these elements could increase price of products more expensive, duration of project implementation and reduction in demand of petroleum projects. The current and pending greenhouse gas regulations are playing significant role in order to increase compliance costs associated monitoring or sequestering emissions and acquisition of new technologies.

Legal factors: Global forces have been affecting the company on higher extent since legal rules and policies have been changing widely. Total oil. is required to give more attention towards legal policies so that all acts and trade practices can be managed in effective manner. In India, the company will be in a position to emphasize more on legal aspects (Kourteli, 2005). In order to carry out overseas business activities, the management of Total oil has to follow all regulations associated with mining and transportation of oil and gas products. Furthermore, organization needs to consider political relationship and trade operation between US, India and other European nations.

The success of organization and business operation of particular expansion project in international market projects may be disrupted by civil unrest, acts of terrorism along with local security concerns (Webster and Hamiton, 2012). All these factors increase cost of project or even shut down operations within period of time. In India, Total oil. has to develop good relationship with various pressure groups, government, general public etc. for generating good returns from project.

Importance of understanding the culture of each country

In the process of overseas business operations, the management of Total oil should have to consider the culture of that particular nation. In the current study, importance of culture is explained below:

  • India is a place where people belong from different cultures and regions (Wetherly and Otter, 2014). By understanding culture of people, business entity can adopt different kinds of marketing strategies as per the perception of domestic citizen that will enhance sales of company.
  • By evaluating culture of people, management can adopt wide range of business strategies in order to manage culturally diversify work force. This approach assists management for avoiding conflicts among culturally /li>
  • This information helps management in formulation of wide range of business strategies in order to avoid social issues (Ghannadian, 2006). By avoiding social issues, management of Total can manage several activities during business expansion with an appropriate manner.

Evaluation of distribution channel of Total oil in comparison of its major competitors

The major competitors of Total oil includes Exxon Mobil Corporation, Royal Dutch Shell and BP Plc. There is similarly identified in distribution process of goods and services. The management of Total has used various tactics for managing distribution of oil and lubricants. In similar to other oil company, Total oil sales its products with various distributors, partners, multi- service stations, fuel stations etc (Akrivopoulou and Christina., 2012). In addition to that business entity also uses various supermarkets, small retail shops, workshops of automobile companies in order to manage sales of crude based products. Furthermore, business entity also provides franchises, dealership and other distribution channels that are similar to major distribution channels of other competitors. All these approaches are playing significant role in order to manage sales of company. In addition to that, Total Oil firm also uses online shopping sites to sale lubricants products.

Marketing strategies of Total in different countries against main rivals

For managing competition with major competitor like Royal Dutch Shell in US and British Petroleum in UK (Betz, 2002). The management of Total Oil has adopted various marketing strategies in order to promote wide range of products and services. In order to manage competition with Shell in US, Total Oil company promotes quality of products with the wide range of promotional tools such as social media, TV advertisements, new papers, magazines etc. These tools have played significant role to encourage consumers. On the other hand, business entity develops various marketing strategies and advertisements tools on the basis of traditions and culture of people in UK for managing competition with British Petroleum. By using cultural elements, business entity can develop a special image of company in mind of consumers (Esslinger, 2009). Currently, business entity wants to expand business in India so as Total has to manage competition with various private and public oil companies in India such as Reliance and HP (Doing business in India: India trade and export guide, 2015). In this regards, management has considered both traditional and modern internet based promotional tools based on culture of target consumer that will enhance goodwill of company and awareness of product among consumers.

Discussing the extent form which company can meet the need

Total Oil is offering wide range of crude or oil based products for business and individual consumers (Stevens, 2008). To meet needs, tastes and preference of consumer in India or across border, the management of Total Oil should have to carry out market assessment from which company can assess information about willingness of consumer to pay for particular product and services, number of target consumers, culture of people, standard of living, preference of consumer, products of other companies and consumption pattern of people. On the basis of information collected by considering about mentioned factors, manager can offer best suitable product in India along with appropriate pricing. So, business entity can meet needs and preference of both business as well as individual buyer with an efficient manner that could help organization for increasing sales of company in near future by fulfilling desire of people (Patricia, 2014). So, market assessment can be considered as best tool to meet needs of buyers. In addition to that business entity can carry out customer survey in order to assess more reliable information about their requirements that will enhance ability of firm to increase satisfaction level of client by providing best products.

Critically evaluate and analyze the academic theories

The aforementioned theories and models depict that, Total SA can expand business in other counties that aid to increase overall rate of return and provide good quality of services to large number of buyers. The analysis has been done on the basis of PEST and PESTLE of two organization. It shows that both organization has capability to cover large market potential and meet the expectation of customers in an effectual manner. It can be critically evaluated that, legal and social factors need to be considered at the time expansion of firm because these crate barriers in operating business in other countries (Allen, 2005). It has been found that because of high capital expenditure, total SA has low threat of new entrance thereby firm can easily operate in other countries. Similarly, company can also enter into India without any kind of barrier. On the other hand, it has good financial as well as manpower to compete at the international level.

It can be critically evaluated that, porter's five force model is the imperative way to assess performance of industry. It leads to expand business easily as management can formulate strategies in accordance with prevailing situation. Further, by applying porter's five force model detailed information has gained with regards to suppliers, buyers as well as competitive rivalry of the firm. It ensure certainty about future business activities that aid to increase overall rate of return because company can generate huge sales. On the other hand, PEST analysis is the foremost way to analyze the all aspects of firm on broad way. With this, barriers can be identified in term of cultural issues, monetary policy and technologies. This enables management of both organizations to form the strategies to enter into new market (Webster and Hamiton, 2012).

The operational efficiency is the also the effective analysis that is done by the management before the expansion of firm. This way, potential barriers will be identified for corporation that aid to operate business in India. However, the legal facets are almost in India and UK that assist management to start operation in less time. It can be critically evaluated that, export, import procedures and start of business are to be considered in advance other it hampers productivity of firms. On the other hand, management of people end their appointment is the tough task at the initial stage. Owing to this, management of firms need to consider this as the crucial issues. As the human resources are the most imperative assets of any organization without which success of company cannot be determined for long run (Crucini, Kose and Otrok, 2011).

Furthermore, operational efficiency need to checked against several aspect such as trade between two counties, infrastructure and energy so as to start operation of firms withing specified time span. It depicts that, different theories such as porter's pestle are the effective way to determine success of firm at the time of trade between two countries.

What a company need to consider to enhance their business

In order to enhance business, organization need to concentrate on core operation and human resources. As this is the foremost way to ensure future growth and success of firm. In this regards, the appointment of skilled personnel need to be done in all fields such as finance, marketing and operation. It assists company to create brand image at the international level and meet the expectations of customers in an effectual manner. Further, financial resources need to be strengthen so as to resolve barrier related to increase in cost at the initial stage. Similarly, detail analysis of social aspect need to be done to assess the needs and preferences of customers. In addition to this, organization need to analyze the strategies of competitors who are providing services in India as well as United Kingdom (Ghannadian, 2006.). It leads to develop the effective management approach and attract potential candidate for employment. Further, appropriate marketing strategies can be used by the firm in order to increase sales turnover and increase number of customers. Other than this, internal operation should be mold in accordance with businesses operating at international level. In addition to this, competent employees need to be transferred to new business in order to maintain consistent flow of production at the initial level.


From the report, it can be concluded that, oil multinational companies outperforming in the marketing by making use of limited natural resources. It is because demand of oil and gas is continuously increasing with increase in population that assist management of oil companies to expand their business to a great extent. The research reveals that, UK is providing good base for the corporations to expand their business and cater need of different types of buyers in an effectual manner. With this, customers are able to get the product on the basis of their specification that facilitate to satisfy them. The pestle analysis is the most effective way to measure the performance of firm in particular country and it shows that UK support businesses to great extent that aid to increase the gross domestic product. It also provides opportunities for business to move forward and raise the sources of income in different manner. It has also been found that, British Petroleum has good growth prospectus in the marketplace that allows management caters need of different types of buyers.

Furthermore, Total SA has sound capability to enter into new market because of wide range of sources. With this, it is possible for management of Total SA to increase number of customers and create competitive edge of the firm in the marketplace. It facilitates to increase sales turnover and overall profitability of oil companies. In addition to this, generally the higher market is set on the prices of oil and gas that facilitate to increase profitability. It gives benefit to government of Europe because they charge high rate of taxation in order to reduce the cost of operation. Furthermore, comparative analysis is the effective way to assess the performance of company in term of future growth prospectus. It can also be said that, it assist management to select the appropriate marketing strategies that prove to be effective to address the unfavorable situation and increase the rate of return for company.

There are several factors such as legal, social and political that affect performance of company for some span of time. Owing to this, management need to adopt effective approach that facilitate to bring improvement in the unfavorable situation of company. It can also be said that, legal factors imposes several types of restriction on firm at the time of expansion that decreases profitability at the initial stage. Further, companies may also not be able to expand the business on right time. Likewise, porter's five force model is the effective means to determine growth and success of firm so that management can formulate effective strategies in the same direction. It facilitate to create brand image of the firm and deliver good quality of services to large number of buyers. Other than this, there are several barriers such as trade barrier, exchange rate and other factors need to be considered while expanding business in the marketplace.

It can also be said that, legal consideration and start up consideration need to be considered by the management of firm that aid to ensure easy entry in new market. With this, company can be able to start operation in short span of time and satisfy the need of customers in an effectual manner. Furthermore, environmental analysis sis the imperative need for expansion of the company so management need to make use of several types of approach. In this regards, SWOT analysis prove to be effective to assess the internal capability of firm. Theretofore, expanding business across border is the crucial task that forces management to analysis the business expansion and then takes the final decision for expansion.


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